Buyers have begun to look North, where prices are competitive and living costs are more reasonable. While the average house price in London was £427,875 in October, 14 per cent up on last year, prices in the North average £215,834, a 0.3 per cent fall.
The North has experienced an increased number of home buyers searching for a property in the region, while London and the South have experienced outward migration.
David Bexon, managing director of SmartNew
Homes.com, said: “The recent growth in prices has predominately been reserved for the South. Meanwhile, the average price for a home in the North has remained relatively low, despite increased interest in the area. However, as the continued interest in the Northern housing market looks set to continue, I would expect to see marginal price rises over the coming year to reflect this.”
Steve Brockman, director of A2B Mtg Co Ltd, said: “Normally salaries in the South are higher than the North, so this may not affect house buying power. But prices are rising at an alarming rate, which has killed off the first-time buyer market.”
